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Texas-based Grande Energy Exploration and Production says it will use part of US$3 million ($3.83 million) it has raised to push ahead with an oil search off the West Coast.
Grande Energy was granted a five-year exploration permit last September for an area off South Westland, between Haast and Franz Josef Glacier plus a narrow strip of adjoining coastal land, covering 11,800sq km.
The company yesterday said it had secured US$3 million financing from Opex Energy. Some of the funding would also be used on interests in 22 producing wells in the Barnett Shale, Texas, Grande Energy said.
"This financing is a significant milestone as it gives Grande Energy the ability to put its development plans into practice," said founder, chairman and chief executive Robert L. Gaudin.
Opex president Joseph Carusone said the partnership with Grande Energy was consistent with his company's goal to invest in privately held companies and assets that were likely to provide a superior return on investment within three to five years.
Grande Energy said its Haast Basin project was believed to have the potential to host between one and 10 billion barrels of oil.
So far, seven prospective anomalies had been identified from analysis of existing seismic data, and widespread oil and gas seeps were visible at the surface. Opex's interest was subject to review.
- NZPA
